Smith Micro Software Announces Acquisition Of Allume Systems Inc |
| Sunday, 17 July 2005 | |
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Company Combination Will Offer Wireless Carriers and Handset Manufacturers Industry Leading Compression Technology in an Offering to be Known as StuffIt Wireless July 05, 2005 ALISO VIEJO, CA – Smith Micro Software Inc. (NASDAQ: SMSI), a developer and marketer of a wide range of software and services for the wireless market, today announced it has acquired Allume Systems, Inc., a wholly owned subsidiary of International Microcomputer Software Inc. (IMSI) (OTC BB: IMSI). Allume is a leading provider of compression software solutions that enable state of the art compression, security and archiving of data including JPEG, MPEG and MP3 platforms. The Company's pioneering product suite known as StuffIt® has been a de facto industry standard since 1986 . Allume recently announced the development of a new JPEG compression technology that reduces the size of JPEG images up to 30% in size without any additional reduction of image quality. The company is planning to expand the technology to provide similar compression for MPEG and MP3 files. This technology plays directly into Smith Micro's strategy of broadening its wireless product offerings and provides for the first time to carriers and handset manufacturers enhanced compression technology that could reside directly in the handset. "We are very excited to bring Allume Systems, Inc. into the Smith Micro family, said William W. Smith, Jr., Smith Micro's President and CEO. "Allume's compression technology and their talented employees bring us a new opportunity as we continue to expand our product offerings to wireless carriers and handset providers. With the explosive expansion of camera wireless phones and mobile devices, handset providers continue to need additional storage for all of this data, be it pictures, full motion video or audio. The patent pending technology from Allume provides a very cost effective answer for our customer base." Through the agreement, Smith Micro will pay $11 million in cash and $1.75 million in Smith Micro shares to purchase all outstanding shares of Allume. During the first calendar quarter of 2005, Allume contributed $2.5 million to IMSI's $6.4 million net revenue. We believe the acquisition is accretive immediately to Smith Micro. Why is this important? Discuss this on EVDO Forums. |
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